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FIDIC Lecture - EOT & Related Costs in Construction
FIDIC Lecture - EOT & Related Costs in Construction
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FIDIC FIDIC
FIDIC FIDIC
FIDIC
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The FIDIC Provisions define the conditions where delay
may be claimed as the basis for an Extension of Time
(EOT). Some examples are;
Site
Inclement Weather
Works etc.)
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Meanwhile the principles of how delay and
related costs should be calculated are not
defined by FIDIC. This leads to issues;
issues which are usually contentious due to
various 'schools of thoughts' and varied
interpretations existing worldwide.
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Contentious Issues in Delay
Analysis
resulting in Disputes
Critical Path
Who owns the Float?
Concurrent (or Contractor) Delays and how these
effect Entitlement
EOT and its relation with Compensation for Delay
Which is the best Method of Delay Analysis?
As-Planned Vs. As-Built Comparison
Impacted As-Planned
Collapsed As-Built / But-For
Time Slice / Sub-Networks / Time-Impact
Etc.
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In order to eliminate disputes or facilitate
settlement of disputes, there are now certain
standards used worldwide. The leading
standards are;
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The objective of the SCL
Protocol was to bring
reasonableness and fairness
into the delay assessment
process and to eliminate
widespread manipulation of
complex delay issues www.cspk.or
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The SCL Protocol tried to standardize
the issues such that disputes would be
reduced or eliminated
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It is recommended that;
should be adopted as a
Standard and should be,
where possible,
incorporated in the www.cspk.or
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The SCL Protocol can be
downloaded from:
www.eotprotocol.com
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The remaining slides of this lecture
will review and discuss the basic
Principles suggested and
recommended by the
SCL Protocol
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Basic Principles
suggested and
recommended by
the SCL Protocol
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The Principles suggested by the
SCL Protocol are simple.
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RULE NO. 1
If there is an Employers delay, which is beyond the
Contractors control, and if this delay impacts the
Completion Date of the Works,
the Contractor should be entitled to
receive an Extension of Time (EOT).
[This will effectively result in an extended Time for
Completion and will relieve the Contractor from
having to pay penalties for delay (or Delay Damages
under FIDIC)]
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RULE NO. 2
For the case of recovery of delay (or prolongation) costs
incurred due to the Employer delays, the Contractor must
be able to prove that there has been no other delay, which
is in his own control, and which is equally (or partly)
contributing for delaying the Time for Completion.
This category of delay is called a
Concurrent
(or Contractors) Delay
[In order to win a Delay Costs Claim, the Contractor
must be able to prove that he has not been
responsible for Concurrent Delays to the Time for
Completion]
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RULE NO. 3
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The foregoing Rules proposed by the SCL
Protocol are meant to bring fairness and
reasonableness into the delay assessment
process.
[The emphasis of the SCL Protocol is that no
one Party should benefit from default of the
other Party]
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The Illustrations demonstrating the principles
of the SCL Protocol are contained in the
following Figures A to G
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Principles & Provisions of the SCL
Protocol
relevant to Figure B
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Principles & Provisions of the SCL
Protocol
relevant to Figure D
Core Principle No. 4 - Procedure for granting extension of
time
The EOT should be granted to the extent that the Employer
Risk Event is reasonably predicted to prevent the works
being completed by the then prevailing contract completion
date..The goal of the EOT procedure is the ascertainment
of the appropriate contractual entitlement to an EOT; the
procedure is not to be based on whether or not the
Contractor needs an EOT in order not to be liable for
liquidated damages.
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Principles & Provisions of the SCL
Protocol
relevant to Figure F
Guidance Section 1.4.8
Where an Employer Risk Event occurs after the contract completion
date, in a situation where failure to complete by the contract
completion date has been caused by Contractor Delays, the
principle set out in Section 1.4.7 above should apply, except where
the Employer Risk Event is a non-compensable Employer Risk
Event. In such an event, no EOT (or compensation) should be due.
Where an EOT is due after the contract completion date, the
Employer Risk Event does not exonerate the Contractor for all its
delays prior to the Employer Risk Event occurring. The effect of the
Employer Risk Event should be assessed as described above and
any EOT found due should simply be added to the contract
completion date.
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Principles & Provisions of the SCL
Protocol
relevant to Figure G Slide 1/2
Guidance Section 1.4.1
Where Contractor Delay to Completion occurs concurrently with
Employer Delay to Completion, the Contractors concurrent delay
should not reduce any EOT due.
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Correct Responses for Figures
B to G
Figure No. Question 1 Question 2 Question 3 Question 4
B (c) (b) (a) (b)
C (a) (b) (d) (b)
D (c) (d) (d) (c)
E (b) (a) (d) (c)
F (a) (b) (d) (c)
G (c) (a) (a) (b)
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Congratulations we
have come to the
end of the Lecture.
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FIDIC and Construction Solutions
thank you for your attendance and
contribution.
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We urge all participants to review the SCL Protocol on
their own. Construction Solutions Claims Management
Division (www.cspk.org) will remain available for further
discussions on the foregoing and any other relevant
issue.
This Lecture was delivered by the Managing Partner of
Construction Solutions, Mr. Khalil Tayab Hasan. For any queries
and clarifications, please feel free to contact Mr. Hasan at;
khalilhasan@cspk.org
khalilhasan@hotmail.com
+971 50 8861709
+92 345 8500195
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